The corrective arm/ Excessive Deficit Procedure

The corrective arm of the Stability and Growth Pact ensures that Member States adopt appropriate policy responses to correct excessive deficits (and/or debts) by implementing the Excessive Deficit Procedure (EDP).

Launching an Excessive Deficit Procedure

Assessment of effective action

Countries in EDP are given a deadline of six months (or three for a serious breach) to comply with recommendations that provide them with a concrete path for correcting their excessive deficit within a set timeframe.

Stepping up or abrogating the EDP

The EDP will be stepped up for Member States for which the assessment shows that they have failed to take effective action to correct the excessive deficit in time. This means that they will receive revised recommendations, which may include a new timeline to address the excessive deficit.